I have led you to winners like Caterpillar (CAT) and Johnson and Johnson (JNJ) who are both up considerably in the short time since I recommended them to you. By the way, both of those still have a significant upside. My next stock for you is Capital One (COF) which is taking a beating today and down to $72.94. Earnings were not great for this quarter and estimates had to be lowered for the year. Many believe COF might get hit hard over the subprime mortgage business and they may. That said, this stock has a PE just over 11 even after the bad earnings and a PEG of .82. Here's my gut, let this stock shake out a couple days, you may even miss out on a couple bucks a share but once it restablishes somewhat of a base, take a serious look at buying. This subprime business while a concern is overblown in my mind and a lot of the bad news is now priced in the financials. Bank of America which has no subprime exposure is also compelling at a PE under 11. There is some concern about credit card losses but again with Ken at the helm i have a great deal of confidence in BOA - symbol BAC. Also with a dividend over 4% you can ride out some bad times at BAC.
Recommending COF now, a great time to start a position. If BAC falls under $50 you have to take a serious look at the stock.
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